Kelly Services, Inc. · NASDAQ:KELYA

Kelly Services — Q1 2023 Earnings Presentation

13 slides from Kelly Services's earnings presentation, May 11, 2023

  1. Slide 1: Q1 2023 Earnings Presentation

    Q1 2023 May 11, 2023 1a” EquityAtWork.com Kell ial Nasdaq

  2. Slide 2: Safe Harbor Statement

    SAFE H A R B O R STATEMENT This release contains statements that are forward looking in of large corporate customers as well as changes in their workers with appropriate skills required by customers, nature and, accordingly, are subject to risks and uncertainties. buying practices, risks particular

  3. Slide 3: Non-GAAP Measures

    NON-GAAP MEASURES Management believes that the non-GAAP Management uses Adjusted EBITDA (adjusted These non-GAAP measures may have limitations as (Generally Accepted Accounting Principles) earnings before interest, taxes, depreciation analytical tools because they exclude items which information exc

  4. Slide 4: First Quarter 2023 Takeaways

    First Quarter 2023 Takeaways. Specialty talent demand continues while broader staffing demand continued to be impacted by economic uncertainty and financial market turbulence • Q1 revenue declined by 2.2% on a reported basis, down 1.4% in constant currency(1) • Organic, constant currency(1) revenue

  5. Slide 5: First Quarter 2023 Financial Summary

    First Quarter 2023 Financial Summary. Change Increase/(Decrease) Actual Results As Reported As Adjusted(2) $1.3B (2.2%) (2.2%) Revenue (1.4%) CC(1) (1.4%) CC(1) Gross Profit Rate 20.0% 10 bps 10 bps $10.7M (54.4%) (27.4%) Earnings from Operations (50.6%) CC(1) (23.4%) CC(1) Adjusted EBITDA $25.9M (1

  6. Slide 6: First Quarter 2023 Revenue Trends

    First Quarter 2023 Revenue Trends. Reported(3) Constant Currency(1)(3) Organic(1)(4)(5) Total (2.2%) (1.4%) (0.5%) Professional & Industrial (12.3%) (11.7%) (11.7%) Science, Engineering & (3.4%) (3.2%) (3.2%) Technology Education 43.9% 43.9% 34.8% Outsourcing & Consulting 5.0% 6.4% 4.0% Internationa

  7. Slide 7: First Quarter 2023 Gross Profit Rate Growth

    First Quarter 2023 Gross Profit Rate Growth. • Operating Segments GP rate improved primarily as a result of favorable specialty mix • Acquisitions of higher margin specialty business continues to contribute to our improving GP rate • Permanent placement fees decreased as customers slowed permanent h

  8. Slide 8: First Quarter 2023 SG&A

    First Quarter 2023 SG&A. $ in millions • Expenses from our recent acquisitions of RocketPower and PTS include amortization expense related to acquired intangible assets • Restructuring charge of $5.7 million resulted from our Q1 2023 cost management efforts in response to current demand levels and t

  9. Slide 9: First Quarter 2023 Financial Summary

    First Quarter 2023 Financial Summary. Change Increase/(Decrease) Actual Results As Reported As Adjusted(2) $1.3B (2.2%) (2.2%) Revenue (1.4%) CC(1) (1.4%) CC(1) Gross Profit Rate 20.0% 10 bps 10 bps $10.7M (54.4%) (27.4%) Earnings from Operations (50.6%) CC(1) (23.4%) CC(1) Adjusted EBITDA $25.9M (1

  10. Slide 10: First Quarter 2023 EPS Summary

    First Quarter 2023 EPS Summary. $ in millions except per share data 2023 2022 Amount Per Share Amount Per Share Net earnings (loss) $10.9 $0.29 ($47.6) ($1.23) Loss on investment in Persol - - 48.8 1.26 Holdings, net of taxes(6) Loss on foreign currency matters, - - 16.4 0.43 net of taxes(7) Gain on

  11. Slide 11: First Quarter 2023 Liquidity

    First Quarter 2023 Liquidity. $ in millions • During Q1 2022, we concluded the Persol Holdings cross-shareholding arrangement and sold most of our interest in the PersolKelly joint venture, generating additional capital that we strategically reallocated with the Q1 2022 acquisition of RocketPower an

  12. Slide 12: 2023 Outlook

    2023 Outlook. We are navigating the market created by the current economic uncertainty with a continued commitment to the execution of our specialty strategy Current view of the second quarter of 2023: • Revenue - organic revenue expectations consistent with Q1 2023 results, roughly flat YOY; down 2

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